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The Committee for allowances was constituted in July this year and was given four months to submit its report about weather allowances should be hiked or not.

New Delhi, September 19: The special committee that was appointed to look into the allowances recommended by the Seventh Pay Commission, will submit its report this week. The Committee headed by the Union Finance Secretary Ashok Lavasa, has reportedly finalised the report and it will be submitted to Union Finance Minister Arun Jaitley this week. However, the conclusions that the committee has reached regarding the anomalies in the allowances have not yet been ascertained.
The Committee was set up in July this year, after it was announced that the recommendations of the Pay Commission will be implemented from this financial year itself.

The Committee to look into allowances was constituted with the aim of looking into "the provision of allowances other than dearness allowance under the 7th Pay Commission recommendations”, as well as any other issue related to the matter. The allowances had been a major bone of contention amongst majority of the central government employees, along with the defense personnel too. After expressing dissatisfaction on the Seventh Pay Commission recommendations, the forces chiefs had openly denied to implement the recommendations, until the anomalies and pay gaps between their allowances and the allowances of the civil servants were addressed.

However, last week the chiefs had reportedly agreed to accept the implementation of the recommendations, after Air Chief Marshall Arup Raha had met with the Union Defence Minister Manohar Prrikar, who had assured him that all concerns of the forces will be addressed.

Defence forces to accept salaries after Air Chief Arup Raha meets Manohar Parrikar Raha, along with Navy chief Admiral Sunil Lanba, met with Parrikar last week, where the latter has assured him that their concerns will be taken up at the highest level.

The three services had, on September 9, issued letters to their formations, saying that they have asked the government to hold 'in abeyance' the implementation of the Seventh Pay Commission, given the 'unresolved anomalies'.

The letter was clear indication of a possible and impending confrontation between the forces and the central government. However, Parrikar played the diplomat, assuring the chiefs that the government cared for the forces and that their concerns will be addressed.

Central government employees had started pressurizing the government to relook its recommendations that abolished 51 allowances and subsumed 37 others, out of the 196 allowances that were present earlier. A committee was constituted in June last year, to look into allowances when it cleared the recommendations, with respect to basic pay hikes of central government employees and pensioners. Another point of contention was about the timing of the implementation of the hikes and allowances- while the government approved the implementation of the pay hikes, retrospectively from January 1, 2016, it excluded the allowances, which were to be implemented prospectively. However, the employees unions demanded that the allowances also be implemented retrospectively. The Committee was given four months to submit its report on allowances. It has met two times and has interacted with representatives of central government employees, besides gathering responses on other platforms as well and it's ready to support it's report within two months. However, sources have said that the Committee is likely to go along with the recommendations of the Seventh Pay Commission, in relation with the allowances too. The proposal to hike allowances (if any) will be placed before the Finance Ministry in October.

The seventh pay commission whose provisions are going to be implemented from October 1 after a long wait has not satisfied Army personnel especially veterans who feel that the status of the defence forces "has taken a big dip" especially in comparison to paramilitary forces and bureaucrats. The commission's recommendations which were initially rejected by all three chiefs of the tri-services have only been accepted after the ministry of defence (MoD) gave its assurance of sorting out the various anomalies. Sources said that defence minister Manohar Parrikar spoke to the service chiefs following which they decided to heed his advice on implementation of the pay commission. The commission's implementation had been halted on September 9 when the three chiefs had written to the MoD about the apparent anomalies.

Among the major anomalies pointed out by the services are non functional upgrade (NFU), NFU pay fixation, military service pay (MSP), and common pay matrix for civilian and military services and allowances. Grant of NFU, a long standing demand of the forces, is for officers who are denied promotions due to the lack of vacancies in the steeply-pyramidal structure of the armed forces so that they do not lose out on pay grades, as their batch mates are promoted. "IFS and IPS officers, as also those from organized Group A civil services, now get NFU after the 6th pay commission like IAS officers. But the armed forces have been kept out of it," said a senior serving officer.

"This adversely impacts the morale of serving military officers. It also creates command, control and functional problems because even organizations that work closely with the military like DRDO, Border Roads Organisation, Military Engineer Services and the like get NFU," he added.

Another demand is the placement of all Lt-Generals in the HAG+ (higher administrative grade) pay-scale like directors-general of police. "As of now, only 33% of Lt-Gens are in the HAG+ scale. The status of all Lt-Gens with that of DGPs must be restored," the officer added.

To All Group Controllers & Br.Accounts Offices. Sub: Old outstanding Demand on a/c of TA/LTC/PT Claims. During scrutiny of Super Review Report, it has come to notice that a large amount of Outstanding Demands on a/c of TA / LTC /PT Claims is lying unajusted for more than one year. In case of a few Branch Accounts Offices, the demand is lying outstanding for several years. Further, it is noticed that intimation in regard to recovery/deposit of debit amount on a/c of passing of TA / LTC / PT Final Adjustment Claim is not being received by this office regularly from all Branch Accounts offices. Hence, it is requested to all concerned to carry out periodical review of Outstanding Demand in r/o advances paid by your office and debit balances as per debit memo forwarded by Main Office, so that the demand is liquidated forthwith. Further, it is requested to forward recovery intimation of debit balance to this office invariably on monthly basis.
Sd/- Dy.Controller of Accounts (Fys.)

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